IT AND OUTSOURCING

Outsourcing is not often successful - why?

Expectations as the main motivation for outsourcing are usually in the foreground, not the actual objectives of outsourcing.

Expectations of outsourcing:

• reduced costs
• increased flexibility
• improved processes
• improved services
• best practice achieved
• increased cost transparency
• risks shifted on to outsourcing provider
• reduced capital costs
• modernized processes
• new products/services offered

However in reality, these expectations are usually not achieved.

Why are these expectations often not achieved?

Here are some resons:

• companies lack the time and experience to carry out outsourcing adequately
• the objectives and its feasibility are not clearly defined
• there is little or no experience in SLA definition or description
• there is insufficient experience in drawing up contracts
• the outsourcers frequently control the outsourcing process.